1. MOEA Taiwan is Ready for the WTO Minister Chih Kang WANG ROC Ministry of Economic Affairs October 1999

2. 2 WTO F Rule-based multilateral trading system –Market Access: Tariff, NTM, Agriculture, Textiles, Trade in Services –Rules: ADP, SCM, SG, SPS, TBT, LIC, RO, VAL, PSI, TRIPs, TRIMs F Forum for multilateral trade negotiations F Institutions: DSB, TPRM F Policy coordination: IMF, WIPO, World Bank, and others

3. 3 WTO Accession Process PHASE I Fact-Finding PHASE II Negotiations PHASE III WTO Decision PHASE IV Imple- mentation Multilateral Terms of Accession Bilateral Market Access F Schedules F Protocol F WP Report F WP draft decision Consensus (or 2/3 vote) of General Council Implementation Domestic procedures Fact-Finding Trade-related information

4. 4 F Key dates –Jan '90 Application submitted to the GATT –Sep '92 Application accepted by the GATT Council and observer-ship granted –Dec '95 Application transferred to the WTO Taiwan’s Accession

5. 5 26 Members: Negotiations concluded 1 Member (Hong Kong): Bilateral agreement yet to be signed 25 Members: Bilateral agreements signed Bilateral Negotiations

6. 6 Multilateral Negotiations F Ten Working Party Meetings were held F Completion of first review of the Draft Working Party Report & Protocol of Accession F Expert Meeting on subsidies & agriculture policies was held

7. 7 WTO Agreement Concessions and Commitments Protocol of Accession Legislative Procedures Domestic Laws and Regulations Domestic Legislative Process

8. 8 Commitments & Concessions: An Overview F Commitments and Concessions on Market Access F Commitments and Concessions on Trade in Services F Commitments and Concessions in the Working Party Report

9. 9 Commitments & Concessions on Market Access F Agricultural Products –Tariffs (1992 average nominal rate: 21.83%) u Upon accession: 15.48% u After full implementation of commitments: 12.93%

10. 10 Commitments & Concessions on Market Access F Industrial Products –Tariffs (1992 average nominal rate: 6.52%) u Upon accession: 6.15% u After full implementation of commitments: 4.31% –Elimination of Local Content Requirement

11. 11 Commitments & Concessions on Market Access – Pharmaceuticals – Medical equipment – Agriculture – Beer – Paper – Construction equipment – Distilled spirits – Furniture – Steel – Toys FZero for Zero Program (897 items)

12. 12 Commitments & Concessions on Market Access F ITA Negotiation –Participation by 43 countries –Includes computers, telecommunication equipment, and IT products (289 items) –World’s seventh largest trader in IT products F ITA Committee –Discussions on market access, including NTMs, ITA-II, MRAs

13. 13 Commitments & Concessions on Trade in Services F Horizontal Commitments –Investment: No limitation for foreign portfolio investment in securities markets by year 2001 –Entry and temporary stay of natural persons

14. 14 Commitments & Concessions on Trade in Services – Professional Services – Communication Services – Financial Services – Construction & Related Engineering Services – Distribution Services – Education Services – Recreational, Cultural & Sporting Services – Health Related & Social Services – Tourism & Travel Related Services – Environmental Services – Transportation Services F Sectoral Commitments (11 Sectors)

15. 15 Commitments & Concessions in the Working Party Report F Simplification of Registration Requirement for Ex/importers –Elimination of NT$ 5m minimum capital requirement F Negative List System –Establishment of system –Efficiency in the issuance of licenses –Improvement to transparency

16. 16 Commitments & Concessions in the Working Party Report F Elimination of Transition Periods –Harbor Construction Dues –Coal Mixing Requirement F Transparency –Compliance with notification procedures –Establishment of enquiry points –Publication of trade-related laws and regulations –Availability of consultation period

17. 17 Commitments & Concessions in the Working Party Report F TBT & SPS –Provision of TBT & SPS requirements to the WTO Secretariat for review by Members –Improvement to transparency F State Trading Enterprises –Further Privatization of 36 SOEs by 2002 –Modification of legislation to facilitate privatization

18. 18 Commitments & Concessions in the Working Party Report F Government Procurement –Establishment of Public Construction Dispute Resolution Committee –Mechanism to address procurement- related disputes & contract performances, the latter extending beyond WTO rules F Standstill on Price Control Policies –Petroleum products –Salt, Sugar, Fertilizer

19. 19 Commitments & Concessions in the Working Party Report F Tobacco & Alcohol Monopoly Reform –Elimination of monopoly upon WTO accession –Relaxation of advertising regulations –Progressive market liberalization

20. 20 Preparations for WTO Accession I. Law Amendments F Series of Laws Related to the Accession to the WTO –Passage of all 22 laws F New laws & major amendments –Completion & passage of 11 laws –Only 4 laws pending

21. 21 Preparations for WTO Accession II. Adjustment of Domestic Industries F Adjustment of Agricultural Sector: –Progressive tariff reduction –Reduction of production for less- competitive products –Improvement of product distribution promotion system –Enhancement of efficiency on farm land and labor utilization

22. 22 Preparations for WTO Accession F Adjustment of Industrial Sector (I): –Progressive tariff reduction –Antidumping, countervailing and safeguard –Key components and parts, automation of production –R&D, technology transfer and IPR protection

23. 23 Preparations for WTO Accession F Adjustment of Industrial Sector (II): –Product design and image promotion –Mutual recognition of standards and conformity assessments –Environment concern and energy- saving –Strategic alliances and center- satellite system –Government procurement market opportunity

24. 24 Preparations for WTO Accession F Adjustment of Services Sector: –Privatization –Deregulation / transparency –Transfer of management know-how –Training of professional personnel –Elimination of restrictions / progressive market-opening –Prudential measures

25. 25 Preparations for WTO Accession F Intellectual Property Rights: –Various laws and regulations have been enacted or revised –Bilateral IPR cooperation agreements have been signed with many countries –Enforcement has been greatly enhanced

26. 26 Preparations for WTO Accession F Government Procurement: –Enactment of Government Procurement Law –Establishment of GPA-compatible government procurement procedure –Availability of electronic bidding information –Establishment of Public Construction Dispute Resolution Committee

27. 27 Contribution of Taiwan’s WTO Accession to the World F An important world trading partner (14th) and investor (7th) F An economic and trade regime fully consistent with WTO rules and principles F An excellent market full of business opportunities

28. 28 Contribution of Taiwan’s WTO Accession to the World F A strong supporter of trade liberalization and facilitation F An active participant in the future work of WTO

29. 29 THANK YOU